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May 8, 2025
Landowners across the United States are watching farmland prices closely this year. After several years of rapid increases, 2025 is shaping up to be more restrained. Whether you’re planning to sell, hold, or invest, understanding the latest state-by-state shifts, regional drivers, and economic forces can help you make smarter land decisions in today’s market.
U.S. farmland continues to gain value, but the pace is slowing. The national average value per acre sits at $4,080 in 2025—up 7.4% from last year. Adjusting for inflation, however, the real gain drops to 3.9% (Source: USDA ERS).
Farmland now represents roughly $3.18 trillion in asset value, making up nearly 83% of all U.S. farm-related wealth (Source: USDA ERS). While demand remains solid, tighter financial conditions and high interest rates have started to temper growth in many areas.
Farmland values vary sharply by state in 2025. Here’s what the numbers show:
Borrowing costs remain elevated in early 2025. Farmers looking to expand or invest are facing stricter lending terms, which can put downward pressure on values.
Corn, soybeans, and wheat have all seen price drops in early 2025, especially in the Midwest. Lower farm income means buyers are becoming more selective.
To help stabilize the ag economy, the U.S. government raised farm assistance programs to $42.4 billion this year—an increase from 2024. This has provided a safety net in weaker regions (Source: AgAmerica).
Institutional buyers continue to show interest, but still own less than 2% of U.S. farmland. Most ownership remains in family hands, though some regions have seen more investor purchases (Source: Investigate Midwest).
More than 40% of U.S. farmland is held by people over the age of 65. That means a major generational turnover is underway, with land expected to change hands significantly in the coming decade (Source: Investigate Midwest).
Combining farming with solar energy is becoming more common. Over 500 sites across the U.S. are now part of the agrivoltaics movement—offering landowners new income sources.
Lawmakers have tightened restrictions on foreign entities buying U.S. farmland. New legislation introduced in 2025 pushes for more reporting and greater transparency.
Farmland is still a stable asset, but 2025 brings more nuance. The rapid growth of the past few years is being replaced by slower, region-specific shifts. Sellers should weigh timing carefully, while buyers may find better deals in states where values have flattened. As with all land decisions, staying informed by local data and national trends is key.
Q: Which states have the cheapest farmland in 2025?
A: New Mexico ($610/acre), Wyoming ($850/acre), and Mississippi ($2,700/acre) rank among the most affordable (Source: World Population Review).
Q: Is land still a good investment in 2025?
A: Yes, in many areas, particularly where demand is rising and prices are stable. However, buyers should be cautious in markets showing decline.
Q: What causes land prices to fall?
A: Falling commodity prices, high interest rates, water issues, and reduced investor activity can all contribute to price drops.
Q: Will federal farm payments continue beyond 2025?
A: While 2025 payments were increased, future support will depend on political decisions and economic conditions.
Q: How much U.S. farmland is owned by foreign investors?
A: As of 2025, less than 3% is foreign-owned. However, scrutiny has grown in recent years, leading to new legislation (Source: OurMidland.com).
Q: What is agrivoltaics and why does it matter?
A: It’s the dual use of land for farming and solar energy. It matters because it gives landowners another income stream and can increase land appeal.
Q: Will Midwest prices keep falling?
A: Not necessarily. Some areas may bounce back if crop prices recover and interest rates drop. For now, growth is limited.
Q: Are institutional buyers dominating the market?
A: No. They’re active in some regions, but most farmland is still owned by families and individuals.
This content is intended for general informational purposes only and should not be interpreted as legal, financial, tax, or real estate advice. The information reflects broad market observations and draws from a variety of publicly available sources considered accurate and current at the time of writing. However, laws, regulations, and local market conditions may change. Readers are encouraged to seek guidance from qualified professionals regarding their specific situation before making any real estate, financial, or tax-related decisions.
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